18:24
17.10.2025
Alfred Kammer, Director of the European Department of the International Monetary Fund (IMF), declined to comment on a possible reparation loan for Ukraine funded by frozen Russian assets, but stressed the need for a strong legal foundation for any such financial instrument.
The IMF recommends that countries considering the use of frozen Russian assets first seek a solid legal basis before doing so and remain mindful of potential implications for the international monetary system, Kammer said at a press briefing in Washington on Friday.
He added that as discussions on a new IMF program with Ukraine are in their early stages, securing large-scale donor financing is a crucial part of the process.
Ukraine has started these talks with donors to address its financing gap, and the IMF is also involved in determining the scale of these gaps. These discussions are still ongoing and will take some time, Kammer added.
As reported, Ukrainian Finance Minister Serhii Marchenko previously estimated that Ukraine’s 2026 budget will require $45.5 billion in external financing, while the total need for external support under the upcoming four-year IMF program (2026–2029) will amount to $150–170 billion. The uncovered funding gap for 2026–2027 currently stands at about $60 billion.
The current $15.6 billion Extended Fund Facility (EFF), approved in March 2023, initially envisaged total external financing of $115 billion under the baseline scenario and $140 billion under the adverse scenario. However, as the war has dragged on, these figures have been raised to $153 billion and $165 billion, respectively.
The proposed reparation loan being considered by the EU amounts to EUR 130–140 billion, though several member states are still blocking its practical implementation.